Production Prices and Dynamic Stability: Results and Open Questions.

The mathematical models dealing with the dynamic stability of production prices are of two types: models of cross-dual dynamics and models of full cost. This paper examines both types of models, but the main effort is devoted to discussing the former. An analytical framework is built, within which most cross-dual models can be studied in a unified way. The severe shortcomings of the usual differential equations versions are emphasized and new light is shed on the role of different assumptions about the consumption function. Possibilities of further progress in this relatively new field of studies are also discussed. Copyright 1992 by Blackwell Publishers Ltd and The Victoria University of Manchester